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Texas Updates

Responsible AI Governance Act (TRAIGA)
Effective January 1, 2026, the Texas Responsible AI Governance Act (TRAIGA) prohibits the development or use of an artificial intelligence (AI) system with the intent to discriminate against a protected class in violation of federal or state law. Disparate impact alone is not sufficient to demonstrate intent to discriminate under TRAIGA.

 

Previous Updates

Data Breach Liability Protections

Effective September 1, 2025, Texas provides liability protections for certain small businesses facing data breach lawsuits. Covered businesses able to demonstrate that they had implemented and maintained a compliant cybersecurity program at the time of a data breach may be shielded from punitive damages in the event of a data breach lawsuit.

The law applies only to Texas business entities that have fewer than 250 employees and own or license computerized data that includes sensitive personal information.
 
 
 
Noncompete Agreements for Healthcare Practitioners
 
Effective September 1, 2025, noncompete agreement restrictions for physicians are expanded to include licensed dentists, vocational nurses, and physician assistants.

In addition, state law is amended to limit the terms and conditions of physician and healthcare practitioner noncompete agreements to one year and a five-mile radius. Consult with your legal counsel as needed on these legal documents.
 
 
Medical Marijuana Law Expanded
 
Effective September 1, 2025, Texas expands its Compassionate Use Program (TCUP) allowing the use of medical marijuana to:
 
  • Add qualifying conditions;
  • Permit additional cannabis products;
  • Increase the legal limit of tetrahydrocannabinols (THC); and
  • Provide for dispensary licenses.
 
You can read more about it here.
Workplace Violence Prevention Plan

By September 1, 2024, Texas requires certain health care facilities to adopt, implement and enforce a written workplace violence prevention policy and a written workplace violence prevention plan.
 
Last September, Texas SB 240 had also required these facilities to establish workplace violence prevention committees and to respond to incidents of workplace violence in specified ways.
 
For safety guidance and assistance, you can reach out to safetyandrisk@fwcrum.com.
Data Privacy and Security Act

Effective July 1, 2024, the Texas Data Privacy and Security Act (TDPSA) gives Texas consumers privacy rights with respect to their personal data and establishes certain requirements and limitations for covered businesses.
 
The TDPSA's protections do not apply to individuals acting in an employment context or to employment-related data.
Freedom Bill Signed

The Freedom Bill was signed into law that will prohibit private employers in Texas from mandating COVID-19 vaccinations as a condition of employment for employees or contractors.
Human Trafficking Training For Drivers At Transportation Companies

Effective September 1, 2023, to prevent rideshare applications from being exploited by human traffickers, Texas HB2313 requires transportation networks provide company drivers with annual training about human trafficking awareness and prevention. Training materials should be available in both English and Spanish, provided before a new driver is authorized to provide rides using the company’s digital network, approved by the attorney general, and at least 15 minutes in duration.
Hairstyle Discrimination Banned

Effective September 1, 2023, the definition of racial discrimination under the Texas Commission on Human Rights Act (TCHRA) is amended to include discrimination based on hair textures or protective hairstyles commonly or historically associated with race.
The Act applies to employers with 15 or more employees.
Protective hairstyle includes braids, locks, and twists.

 

Data Breach Notification Requirements Amended

 

Effective September 1, 2023, Texas amends its data breach notification requirements to provide that:
 
  • Notice of breach must be provided to the attorney general as soon as practicable, but no later than 30 days after the reporting entity discovered that a breach occurred; and
  • Notice to the attorney general must be submitted electronically using a form that will be provided on the attorney general's website.
Court Clarifies Standard for Payment of Commissions

The Texas Supreme Court has indicated that parties are free to specify in an agreement whatever they want when commissions are earned and paid, but in the absence of any language addressing the timing and entitlement to commissions, the procuring-cause doctrine applies. Under this standard, an employee will be entitled to a commission on sales, even after his or her employment is terminated, if the employee is the proximate and but-for cause of the specific sales.

 

DeSoto Fair Chance Ordinance

DeSoto, Texas, will prohibit an employer from inquiring about an applicant's criminal history on an initial job application, effective January 1, 2022. The ordinance does not apply to employment positions where criminal history must be disclosed by law.

 

Exemptions from COVID-19 Vaccination

Employers cannot require receipt of a COVID-19 vaccine by any employee who objects to the vaccination based on reason of personal conscience, based on a religious belief or for medical reasons, including prior recovery from COVID-19.

Liability for Sexual Harassment Claims Extended
Effective September 1, 2021, Texas expands the reach of its sexual harassment laws and extends the statute of limitations for sexual harassment claims to 300 days.
 
Specifically, the definition of employer is amended to include any person who employs one or more employees (previously 15 or more) or acts directly in the interests of an employer in relation to an employee. As a result, all Texas employers are covered under the amended law, and individual supervisors and coworkers may be held liable for workplace sexual harassment.
 
An employer commits a violation of the amended law if sexual harassment of an employee occurs and the employer or the employer's agents or supervisors:
 
  • Knew or should have known that the conduct was occurring; and
  • Failed to take immediate and appropriate corrective action.

 

Reporting Requirements

Effective September 1, 2021, transportation network companies (e.g., Uber, Lyft, Postmates) and individuals that operate a technology platform used to make deliveries to customers are considered to be employers subject to the state new hire reporting requirements.
In addition, the following workers are considered employees who must be reported if newly hired:
  • Drivers who log into the digital network of a transportation network company (e.g., Uber, Lyft, Postmates), regardless of whether they are considered independent contractors; and
  • Individuals who log into or otherwise use a technology platform to make deliveries for compensation.
Learn more here.

 

 

San Antonio Paid Sick Leave Ordinance Preempted

The Texas Fourth Court of Appeals upheld a preliminary injunction preventing San Antonio’s amended Sick and Safe Leave Benefits ordinance from taking effect since December 2019. The appellate court held that San Antonio’s ordinance violates the Texas Minimum Wage Act.

 

Although all three are currently enjoined, employers can continue to monitor the three separate lawsuits challenging the sick and safe leave ordinances in Austin, San Antonio, and Dallas.

 

June 2020

Austin Paid Sick Leave Law

The Texas Supreme Court has let stand an appellate court ruling that blocked Austin’s mandatory paid sick leave ordinance from taking effect. Austin was one of the first cities to pass such a measure in early 2018, but it faced immediate opposition and has been the subject of court challenges ever since.